Production Update

RNS Number : 2727P

Centamin PLC

25 May 2018

 

For immediate release		25 May 2018

Centamin plc ("Centamin" or "the Company")

(LSE:CEY, TSX:CEE)

Production Update

Centamin today announces the following production update from its Sukari Gold Mine.

Open Pit

Open pit total tonnage mined continues to be ahead of schedule. As mining progresses through the low grade transitional zone of Stage 4A, grades continued to be below budget. The additional oxide material has been short hauled to the new dump leach pad, prepared at the north of the Sukari Hill and is scheduled for irrigation in late Q2. Grades from the open pit are forecast to increase in Q3 as previously reported within the Q1 Results.

Underground

Total underground production is approximately 10% below forecast. Production equipment availability has resulted in lower production ore tonnage mined and subsequently development tonnage mined has increased, resulting in a 50:50 split. The development grade has been lower than budget. Increased tonnes came from the accelerated development to access future stoping. Production equipment availability is now improving and ore tonnes from stoping will increase back to the previous 60:40 split, stoping to development tonnes.

Processing

The processing plant is performing in line with expectations, throughput and productivity. Metallurgical recoveries are performing in line with expectations.

Development

The underground contractors mobilised a second crew and equipment at Cleopatra in April as exploration and development ramps up.

Revised 2018 Outlook

As a result of persisting low grades from the transitional zone in the open pit, combined with lower development grade from underground, production guidance for 2018 from Sukari has been revised to between 505,000 and 515,000 ounces, at a cash cost of production of US$625 to US$640 per ounce produced and an all-in-sustaining cost of US$875 to US$890 per ounces sold. The updated mine plan forecasts a weaker Q2 and strong Q3 and Q4 production profile.

Q2 Operational Results

The Company will publish preliminary production results for the quarter ending 30 June 2018 on 9 July 2018.

This announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) 596/2014.

For more information, please visit the website www.centamin.com or contact:

Centamin plc Andrew Pardey, Chief Executive Officer Alexandra Carse, Investor Relations [phone] [e-mail]

Buchanan Communications Bobby Morse Chris Judd + 44 (0) 20 7466 5000 [e-mail]

 

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